A high and consistent business turnover is a sign of success. It usually means you are amassing substantial revenue across your products and services. It suggests there is demand for your value proposition and that customers want to purchase from your business.
If you manage costs effectively, a high turnover will also typically result in improved profitability that will fuel your company’s ongoing growth. As such, most people want to maximise turnover.
With a cost crisis affecting UK firms, improving turnover may take additional precedence, enabling businesses to optimise revenue, cover rising costs and increase their chances of survival in this trying time.
We have listed nine simple tips for improving business turnover: –
Utilise marketing
One of the best ways to improve turnover is to ensure you are marketing your business effectively.
With suitable marketing, you will attract new customers to your brand, build a favourable reputation and reach more leads. You should be able to persuade more people to purchase your products and services.
There are many ways to market your business, including advertising, social media, website, SEO, PR, etc. You need to determine which will most likely get you in front of relevant audiences to grow your reach.
There are, of course, costs associated with marketing. However, if you find the appropriate tactics and build a high-performing strategy, you will achieve a great return on your investment.
Adjust your pricing model
It’s critical to offer the right price for your products and services that represents the value offered while remaining competitive in the market.
With prices rising across industries, you may need to adjust your pricing to account for increased expenditure. You mustn’t short-change yourself when it comes to pricing, as this could reduce your potential turnover and make it harder to manage costs.
The key is offering a fair price that reflects the effort and quality behind your products and services. If you’re not sure how much you should be charging, it’s worth conducting competitor research to determine what similar products and services are being sold for. This will enable you to price your offering without alienating customers ideally by charging a small premium if it can be justified.
Expand market reach
Another excellent way to boost turnover is to increase your customer base If you think you have reached maximum sales levels or are working in a highly saturated market, you may need to do this by targeting different audiences.
Find different markets where your products and services could apply. Once you have identified such audiences, seek to reposition your value proposition, so it targets them.
By diversifying your brand, you can expand your sales potential by finding more relevant customers on top of the existing markets you work in.
Increase your product/service portfolio
Offering more products or services as part of your offering will boost turnover. Different products and services will help you attract more people, resulting in a more extensive customer base.
On top of this, it will drive how much a customer spends with you if they choose to purchase more than one product or service. Similarly, it will be easier to get people to return for a repeat purchase. These factors will help to maximise the sales from your customers.
Again, there will be a cost associated with providing more products and services, so you need to ensure anything you introduce makes financial sense for your business.
Offer discounts
Offering exclusive deals or discounts enables you to attract customers who otherwise may not have purchased. There’s a reason it’s a common sales technique.
Examples of how you could use discounts to drive turnover include:
- A special offer (such as a discount code or Buy One Get One Free) for a designated time – perhaps to coincide with your off-peak seasons where demand is lower
- A new customer exclusive offer to persuade people to make their first purchase
- A discount for returning customers to encourage repeat purchasing
By offering discounts, you can maximise your sales level for improved turnover. It could also kickstart relationships with loyal customers, which will further affect revenue. However, do not run them all the time as it will be to the detriment of your business and could undermine your value.
Offering incentives
Incentive schemes can be a great way to reward loyal customers while encouraging them to spend.
Many brands utilise frequent buyer schemes or loyalty cards that give customers a reward after they have made a certain number of purchases. Doing so makes customers feel great and respected, while also giving them an additional reason to repurchase with your brand and spend higher values.
Adding an expiration date so that the points must be used within a certain time can make this even more effective.
Upsell
Another popular sales technique used by businesses is upselling. This is where you convince customers to increase the value of their orders by offering additional products or services that complement their existing purchases. Offering a discount for bulk purchases is another option.
By upselling, you improve turnover by encouraging customers to spend more. It also helps them find out about other products and services, which they will hopefully go on to repurchase, making their experience better and improving revenue.
Improve customer loyalty
One of the crucial elements of turnover is a growing customer base. You need to retain your existing customers while attracting new ones simultaneously for this to happen.
There are many benefits to loyal customers. Data shows that customer retention is cheaper than having to recruit new leads. Therefore, it makes financial sense to keep people on board, helping you improve the lifetime value per customer and source repeat purchases.
Loyal customers are also more likely to recommend your business and engage in word-of-mouth marketing, making new people want to purchase from your company, again boosting turnover and building a solid industry reputation.
Utilising prepaid contracts
Another great way to drive revenue is giving customers the option to take out a membership with your company for a specific amount a month. This membership will usually give them access to something, such as your facilities or reduced prices for their future purchases.
Not only does this give them a reason to use your business, it also allows them to save money when doing so. It can also be a useful way to guarantee revenue as you will receive the payment in advance rather.
Design sales strategies
Sales orders are crucial to turnover. You should aim to utilise the talent within your sales team to optimise revenue and improve your monthly sales figures for consistent turnover. This will include recruiting new customers and increasing the value of orders from existing customers.
Incentive schemes are one of the tools that will encourage your sales team to meet specific targets and play their part in improving turnover.
Improve operational efficiencies
Increased turnover typically means increased demand. To maximise turnover, you need to be able to serve all the customers who want to purchase from your business. This means having an efficient operational structure that can be scaled when needed to allow you to meet the work associated with rising turnover.
Your operational efficiency will include ensuring you deliver the quality your customers expect. Doing this consistently will pave the way for high customer satisfaction, leading to improved loyalty and stronger brand sentiment, which will further empower your sales figures.
Another element is cost efficiency – essentially, making sure you meet demand at the lowest possible cost to the business. You need to mitigate rising costs to protect and grow profits that enable you to reinvest in your business.
Conclusion
Increasing turnover in your business is a goal of many businesses, especially if that turnover translates to improved profits.
The tips listed above should give you some valuable ways to drive turnover. The key is to maximise your sales potential, either by offering quality products that satisfy customer needs or reaching as many people as possible.
By effectively increasing turnover in conjunction with reliable cost management, you will access additional revenue to reinvest in your company, such as improving cash flow, empowering growth, or building cash reserves.
Get in touch with us today for advice on improving turnover and accessing finance your growth.